H.R. 5137: Defense Contractor Competition Act

This bill, titled the Defense Contractor Competition Act, aims to examine the impact of mergers and acquisitions among defense contractors on competition within the defense industry. It outlines the responsibilities of the Comptroller General of the United States to conduct a thorough assessment and produce a report for congressional defense committees. Here are the main points of what the bill entails:

Assessment Responsibilities

The Comptroller General is required to:

• Evaluate the effectiveness of any remedies related to past mergers and acquisitions of defense contractors in terms of:
• Overall competition within the defense industry.
• Sustainability of the defense industrial base.
• Examine how well various government entities, particularly the Attorney General, the Federal Trade Commission, and the Secretary of Defense, have worked together during merger and acquisition reviews.
• Analyze the methods used by the Secretary of Defense to assess how vertical integration of defense contractors affects competition. This includes looking at how data is collected and the ability to access relevant information from the involved defense contractors.
• Review how well previous recommendations aimed at improving competition among defense contractors have been implemented by the Comptroller General, the Secretary of Defense, or the Defense Science Board.

Timeframe for Assessment

The assessment must cover a ten-year period prior to the enactment of this Act, focusing on the competitive effects of mergers and acquisitions that occurred during that timeframe.

Report Submission

A report detailing the findings of the assessment will be submitted to the congressional defense committees, providing them with insights and data relevant to the competitive landscape of defense contracting.

Objective of the Bill

The overall goal of the Defense Contractor Competition Act is to ensure that mergers and acquisitions do not hinder competition in the defense sector, which is crucial for national security and the effectiveness of military operations.

Relevant Companies

• BA (Boeing) - As a major defense contractor, Boeing could face scrutiny over its past mergers and acquisitions and their effects on competition.
• RTX (Raytheon Technologies) - Raytheon, with its significant defense sector presence, may be a subject of assessment regarding its competitive practices.
• LOCK (Lockheed Martin) - Lockheed Martin's acquisitions and their impact on industry competition could be examined as part of the bill's objectives.
• NOC (Northrop Grumman) - This company may also be impacted by the assessment of how its mergers have influenced competition in defense contracting.